Epic-Google settlement sparks industry discussion on mobile game fees and distribution
- “We are hopefully moving to a market with a fairer market share for creators.” - Oscar Clark
- “In a time of economic and industry crisis, I think it's imperative that all of the digital marketplaces look at ways to support the game industry by adjusting their fees.” - Susan Cummings
The latest in the Epic Games and Google settlement could introduce new 9% or 20% fees on mobile game transactions, depending on how games monetise, including through external links.
The move has prompted discussion across the industry, with some seeing it as a step towards greater choice and others warning it may raise more questions about the future of mobile game distribution.
We reached out to our Mobile Mavens to find out what they thought of the latest developments. Here's what they had to say.
Oscar Clark
I've yet to really understand the details but opening up 3rd party transactions and reducing transaction fees is absolutely the right way to go.
If I understand correctly the 9% or 20% bands being talked about are significant compared to credit card transaction fees but still a positive direction
But I only see this affecting the US market right now.
The EU and UK markets need similar assurances too. But I'm not sure that's quite what's on the cards right now. Instead we are getting legislation like the Online Safety Act and so called Digital Fairness that will make things harder for smaller companies (and has potential for wider industry damaging consequences) and IMHO fail to deliver the promised benefits for consumers.
We are hopefully moving to a market with a fairer market share for creators. It's only a matter of time before Apple and Google (and I'd argue Steam/Playstation and Xbox) do that voluntarily or are forced to due to further legal action or market trading regulations.
And I say that as the guy who took 60% back in the Mobile Java era!
Ben Cousens
Mobile platforms are finally heading in the right direction – becoming more open and giving developers proper choice over how they distribute and monetise their games. Phones are starting to behave like real computers, where you can install apps where you find them and actually do more with what has become everyone’s primary device.
That’s a solid step forward and one that should lead to fairer, more dynamic in-game economies on mobile. It’s good for players, good for developers, and way overdue. Independent and mid-sized studios in particular stand to benefit most, as they’ll have more freedom to reach players directly and experiment with new models.
“Everyone’s focused on transaction fees as if they’re just payment processing costs, but the value lies in distribution.”Ben Cousens
Still, I wouldn’t expect this to spark a wave of new growth by itself. Everyone’s focused on transaction fees as if they’re just payment processing costs, but the value lies in distribution. Epic’s potential advantage isn’t just a lower fee – it’s whether they can actually help developers reach the right audiences better than Steam, Apple or Google. If they can do that, then 12% is a bargain.
By contrast, it’s fair to question what today’s web shops really offer for their 7–10% take, when much of the infrastructure is increasingly commoditised. The leapfrog change in distribution and monetisation that will define the next growth cycle hasn’t landed yet – until it does, the big players are just fighting over margin in a lower-multiple market.
Susan Cummings
In a time of economic and industry crisis, I think it's imperative that all of the digital marketplaces look at ways to support the game industry by adjusting their fees. 30% of revenue, combined with taxes, in a time when developers can't raise money, can't get discovered, makes the economics of game distribution untenable for so many game companies. So I applaud this and applaud the work Epic has done to improve the business of game publishing for our industry.
“Without the games, there are no marketplaces. We need to all contribute to fixing the mess we are in.”Susan Cummings
When these stores launched I can understand they had to take 30% to get their businesses working - but now that these marketplaces are massive, surely there are economies of scale that allow for these fees to be adjusted and support the growth of the industry that made them so successful. Without the games, there are no marketplaces. We need to all contribute to fixing the mess we are in.
Joep van Duinen
This move will give players more choice, and restore freedoms for both developers and players. The more places there are for players to play, the more revenue channels there are for developers - so everyone benefits. We’ve always backed the open web at Poki, and we’re happy to see distribution moving in the direction of choice, flexibility and freedoms.
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